Schwarzeneggers Sued Over House Sale

DECEMBER 17--A lawyer who recently bought a $7.95 million Pacific Palisades home from Arnold Schwarzenegger and Maria Shriver is suing California's first couple, claiming that they hid damage to the estate's pool and tennis court, as well as a mold problem in the screening room. Now you know what blindingly rich people squabble over. In a December 10 Los Angeles Superior Court filing, Susan Loggans claims that Schwarzenegger and Shriver failed to disclose significant "construction defects" prior to the September 28 sale (though Loggans purchased the property "as is," she contends that the true extent of damage was minimized by Team Arnold). Loggans, who is seeking a court order referring the dispute to an arbitrator, did not specify monetary damages in her court pleadings. Below you'll find a statement of claim prepared by Loggans, who accuses the famous couple of three instances of fraud. As a condition of the sale, Schwarzenegger and Shriver inserted a clause in the contract requiring that the sale price be kept confidential. They even paid an extra fee to the broker to "keep the sale price out of the Multiple Listing Service." (9 pages)